The former operators of an Italian restaurant in Canberra have been penalised $16,000 by a court after they failed to comply with an order to backpay workers.
The Federal Circuit and Family Court recently imposed a $12,500 penalty against GK Food Bars & Restaurants Pty Ltd, which formerly operated the now-defunct La Pasteria restaurant in Greenway.
George Varvaritis, company director, was penalised $3500.
The penalties were imposed in response to the company breaching the Fair Work Act by failing to comply with a compliance notice requiring it to back pay two workers.
"Mr Varvaritis was involved in the contravention," a Fair Work statement said.
The court also ordered the company to take the action required by the compliance notice, which includes calculating and rectifying underpayments owed to the two workers, plus superannuation and interest.
The ombudsman, Sandra Parker, started an investigation after receiving requests for help from two GK Food Bars & Restaurants workers.
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A Fair Work inspector issued a compliance notice to the company in January 2020 after believing it failed to correctly pay the two workers.
The inspector believed one worker, employed on a casual basis as a cook at La Pasteria from May to July 2019, was underpaid casual minimum rates and superannuation owed under the Restaurant Industry Award 2010.
The inspector believed the other worker, employed as full-time head chef at La Pasteria from April to August 2019, was underpaid wages for hours worked in his final two weeks of work and not paid accrued annual leave entitlements at the end of his employment.
Ms Parker said business operators that fail to act on notices need to be aware they could face court-imposed penalties on top of having to back pay workers.
"When compliance notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements," Ms Parker said.
"Any employees with concerns about their pay or entitlements should contact us for free advice and assistance."
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